Vanguard takes steps to align municipal money market lineup with changing market dynamics

Following thorough evaluation, Vanguard determined that the minimal provide of distinct brief-expression municipal securities obtainable in Pennsylvania and New Jersey makes it no extended achievable to satisfy the expenditure goals and preserve the diversification and chance profile of the $1.8 billion Vanguard Pennsylvania Municipal Cash Market Fund and the $1.two billion Vanguard New Jersey Municipal Cash Market Fund. Vanguard has shut each money to new traders and designs to liquidate each individual of the money in November. Vanguard will continue to make investments in the Pennsylvania and New Jersey revenue current market universes as element of Vanguard Municipal Cash Market Fund, Vanguard Pennsylvania Extended-Term Tax-Exempt Fund, and Vanguard New Jersey Extended-Term Tax-Exempt Fund.

“We are focused on giving a feasible and considerate lineup of revenue current market items, and we are self-assured that our streamlined suite of tax-exempt revenue current market money is effectively suited to satisfy investors’ funds management and tax-absolutely free money tastes,” explained Greg Davis, Vanguard chief expenditure officer. “Due to the brief provide of selected styles of municipal securities obtainable in Pennsylvania and New Jersey, we imagine these distinct municipal revenue marketplaces no extended provide the current market depth essential to prudently supply these state-distinct items in all current market circumstances. Our reduced price ratios make it possible for us to take care of our money in a conservative way, and we will continue to act in the most effective pursuits of our clients to make sure our money satisfy their distinct expenditure goals.”

Vanguard’s revenue current market expenditure groups utilize a conservative technique to fund layout and expenditure philosophy, concentrating on the highest-excellent credit securities obtainable. Vanguard municipal revenue current market money are overseen by a team of municipal bond expenditure specialists, which include portfolio administrators, senior credit study analysts, study associates, and traders. The company has a deep credit study team that analyzes specific securities and collaborates carefully with our portfolio administrators and traders. The firm’s stringent expenditure protocols have enabled Vanguard money to choose on meaningfully significantly less credit chance relative to friends above the many years to make sure liquidity across a variety of current market circumstances.

Shareholders have the possibility to exchange into yet another Vanguard fund, which include, but not minimal to, Vanguard Municipal Cash Market Fund. Shareholders may also opt for to redeem shares prior to the liquidation date. On the liquidation date, the fund’s belongings will be offered and the proceeds distributed to any remaining shareholders.

Vital dates

• September twenty five, 2020. The money are shut to all new traders.
• November 5, 2020. The money will close to new investments from present shareholders. Fund privileges, which include checkwriting, alternative redemption fund, direct deposit, computerized investments and exchanges, directed dividend payments, computerized withdrawals, and expected minimal distributions, will no extended be obtainable. Checks presented for payment on the fund before November 5 will be honored if enough shares are obtainable for payment.
• On or around November 24, 2020. At the close of company, the Pennsylvania and New Jersey Municipal Cash Market Funds stop to work.

  All remaining proceeds will be distributed to shareholders by wire (working with most well-liked banking recommendations) or by check out (working with tackle of report), unless Vanguard gets other recommendations by November 23, 2020.

Vanguard: A fastened money chief

With more than $1.nine trillion in global belongings under management, Vanguard Preset Income Team is just one of the greatest bond and revenue current market fund administrators and the greatest provider of municipal bond money in the sector. Vanguard launched its first municipal bond money in 1977 and now oversee more than 100 global mandates on behalf of Vanguard traders, which include energetic and indexed domestic and international bonds, municipal bonds, revenue current market securities, and steady price belongings. Vanguard’s exclusive structure and continued concentrate on reduced charges enables Vanguard fund administrators to avoid using on undue chance to boost returns or sacrifice excellent to reach for generate.

Read through the prospectus updates for the Pennsylvania Municipal Cash Market Fund and the New Jersey Municipal Cash Market Fund.

Notes:

For more facts about Vanguard money, go to vanguard.com to get a prospectus or, if obtainable, a summary prospectus. Expense goals, challenges, rates, expenditures, and other critical facts about a fund are contained in the prospectus read and look at it carefully before investing.

All investing is subject to chance, which include the achievable decline of the revenue you make investments.

The money are only obtainable to retail traders (normal individuals). You could get rid of revenue by investing in the money. While the money look for to protect the price of your expenditure at $1.00 for each share, they can’t promise they will do so. The money may impose a payment upon the sale of your shares or may quickly suspend your means to market shares if the funds’ liquidity falls beneath expected minimums due to the fact of current market circumstances or other variables. Investments in the money are not insured or guaranteed by the Federal Deposit Coverage Corporation or any other authorities agency. The funds’ sponsor has no legal obligation to supply financial guidance to the money, and you need to not hope that the sponsor will supply financial guidance to the money at any time.

In get to supply for an orderly liquidation and satisfy redemptions in anticipation of the liquidation, the fund may deviate from its expenditure goal and approaches as the liquidation date approaches.

Shareholders need to talk to their possess tax advisors about any tax liability ensuing from any expenditure final decision which include, but not minimal to, redemption, exchanging shares for shares of yet another fund, or the receipt of liquidation proceeds.

All asset figures are as of August 31, 2020, unless normally famous.